The IRS allows businesses, freelancers, and entrepreneurs to take advantage of several tax deductions, which help reduce the amount you owe the government each year. Luckily as a small business owner, you can write off several business expenses as tax deductions. Many deductions require documentation, so consider a receipt and expense tracker to help record, organize, and substantiate your expenses. 
Check out these small business tax deductions you can utilize for your organization. 

Office equipment and supplies

Whether you’re running a small business from an office or your home, certain supplies are essential to keep your operations running smoothly. That’s why the IRS allows you to deduct the cost of certain office equipment and supplies from your small business taxes. 
Some examples of these deductible business expenses include:
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Home office deduction

If you’re a small business owner or freelancer working from home, take advantage of the home office deduction, which allows you to deduct $5 per square foot of your home used for business purposes. You can deduct up to 300 square feet, meaning you can receive a maximum deduction of $1,500. 
To qualify for this deduction, you must meet one of these criteria:
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Business insurance premiums

Business insurance is often required to sign a lease on office space or get a business license, meaning you’ll have to pay a monthly or yearly premium. Luckily, you can deduct the cost of your business insurance from your taxes. Some tax-deductible insurance policies may include:
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Marketing and advertising

Marketing and advertising are key elements to the success of any business, small or large. That’s why the IRS lets you deduct 100% of your marketing and advertising costs related to your business, up to a maximum of $5,000. Examples of these expenses include:
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Startup business expenses

If you launched a small business in the last tax year, you could deduct 100% of your startup expenses, up to $5,000. The cost must have been incurred before your business became operational to qualify as a startup expense. Here are some examples of startup expenses:
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Business vehicles

If you use a vehicle for business-related purposes and never for personal use — e.g., a work van or truck — you can write off all expenses associated with operating and maintaining it. There are two ways you can deduct your vehicle-related expenses:
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Employee salaries and benefits

If you're a small business owner with employees, you can deduct their salaries, benefits, paid time off, bonuses, and payroll-related employment taxes. There are some requirements for writing off these expenses, such as:
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Check with an accountant or tax professional to ensure you’re calculating and evaluating these deductions correctly. 

Business meals

Do you often take clients out to dinner or take your staff to a nearby restaurant for the occasional work lunch? The IRS allows you to write off 50% of food and beverage purchases for these meals as long as they relate to your business. Make sure you keep the following documentation to help deduct these expenses from your taxes:
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Business credit card and loan interest

The IRS allows you to deduct interest paid on business loans or business credit cards. Currently, you can only write off interest paid that equals 30% or less than your taxable income. If you want to claim this deduction, you must meet the following IRS requirements:
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The IRS and Congress constantly change tax laws and deductions, so stay informed about those alterations. If you’re unsure what you can or can’t write off on your small business taxes, speak with a tax professional for assistance.

WRITTEN BY

Sophie H.